Meridian House, Arle Road, Cheltenham, GL51 8LZ

Summary

Reversionary Office Investment

Investment Summary

• Modern 2 storey office building totalling 12,313 sq ft NIA
• Located 1 mile from Cheltenham town centre
• The property is to be sold via a new 999 year long leasehold at a peppercorn rent on completion of the sale
• Let to QA Limited until 13th May 2023
• Low base rent of £156,000 per annum (£12.80 psf)
• Low capital value of only £148 psf
• Strong covenant with D&B Rating of 5A1
• Alternative residential use potential
• Offers are sought in excess of £1,825,000 (One Million Eight Hundred and Twenty Five Thousand Pounds) subject to contract and exclusive of VAT
• A purchase at this level reflects an attractive Net initial yield of 8.05%, after allowing for purchaser’s costs of 6.22%

Situation

• Located 1 mile north west of Cheltenham town centre
• Less than 10 mins drive time to the M5 (Junctions 10 & 11)
• Cheltenham Trade park was constructed in phases in the 1980’s and 1990’s
• Meridian House benefits from prominent frontage onto Arle Road
• The property is surrounded by residential occupiers and has alternative residential use potential
• Surrounding occupiers include Sainsbury’s, Boots, Argos, Topps Tiles, Screwfix, Currys & PC World

Property Description

Meridian House comprises a two storey office building that is currently used by the tenant as a teaching centre. The building was built in 1991 and is of steel frame construction, with brick elevations under a pitched tiled roof. Internally the specification includes:

• Ground floor reception area
• New carpets
• Air conditioning installed by tenant
• Raised floors
• Suspended ceilings with LG7 lighting
• 8 person passenger lift
• Double glazed windows
• Shower
• Male, female and disabled toilet facilities on each floor

Externally, there is provision for 59 car parking spaces within the demise, of which 27 are next to the building and 32 in a separate private car park. This reflects an excellent overall parking ratio of 1:209 sq ft.